Cryptocurrencies and their value can be determined from the fact that they, unlike the first monetary assets, weren’t created out of need but ended up being one.
The past five weeks have been rough for all the cryptocurrencies and the following report shows the instability of these currencies, the change in their value along with causes and progress if any during that period.
The Standpoint of the current crypto market
The SFOX Multi-Factor Market Index from August 5th, 2019 to September 9th, 2019 has made the climb towards the right side of the meter and is now mildly bullish.
The mater factors that are responsible for the determination of this index’s monthly worth are:
- Rate of change on price
- Market’s emotional standing
- A sector’s constant development
The range of this index is from highly bearish to highly bullish. The formula used for its calculation is proprietary and uses a combination of ciphered data related to cryptocurrency’s online traffic. This “Mildly bullish” rating means that there has been a uniform growth in all the cryptocurrencies.
Cryptocurrencies and their value shouldn’t be undermined
As of Aug 5th– Aug 10th Bitcoin movement has been increased due to trade concerns between the U.S. and China. But will Bitcoin be able to withstand the decline in its value when there is a continued debate globally that shows deep concern over that fact the BTC’s value dropped by 4% on the 15th of August?
Investors remain unsure of how they should work with BTC because of its unpredictable behavior. But some of them still took the chance to invest in crypto and blockchain solutions as of Aug 5th to Sep 11th.
- Job listings were posted by Mastercard for payment solutions based on blockchain. A technology that they developed with R3 on Aug 5th.
- A payment method developed by Allianz Insurance based on blockchain- Aug 8th.
This kind of news is what’s driving this industry, but no one is sure for how long. The only crypto-asset with an increased monthly value was Ethereum Classic reported on Sep 9.
Everything seems to be pointing towards the instability of this market. A decrease in sentiment “Extreme Fear” was reported in spite of 0.61% BTC returns the same day. Even after the positive comments made by the founder of Ethereum, it’s value still declined by 9%.